Johnson Controls - Leading Supplier of Vehicle Interiors and Building Control Systems - to Showcase its Success in China
U.S. Secretaries of Commerce and Labor Will tour firm's Beijing automotive plant on June 22
PLYMOUTH, Mich., June 21 -- As a leading, global supplier of vehicle interiors, Johnson Controls has set its sights on leveraging new business opportunities in China's burgeoning automotive market. The company will have a chance to showcase its success thus far on June 22, 2004, when it hosts a visit in China from U.S. Secretary of Commerce Donald Evans and U.S. Secretary of Labor Elaine Chao.
Evans and Chao will tour the company's newest Beijing Johnson Controls Automotive Components Company facility in Beijing, which manufactures seat systems and components for DaimlerChrysler (Jeep), Hyundai, and Mitsubishi vehicles assembled in China. Johnson Controls' initial capital investment in the facility was US$11.3 million. The U.S. officials also will meet with senior executives from Johnson Controls. The purpose of the visit is to promote automotive-industry trade with China.
"We're pleased to acquaint Mr. Evans and Ms. Chao with our facilities, capabilities and future plans for our automotive and building controls units in China," said Denise Zutz, vice president of corporate communications of Johnson Controls. "Our company has succeeded in serving automakers and commercial building firms around the world, and we're excited to take this opportunity to share our insights and best practices."
The Beijing plant is one of 12 facilities Johnson Controls operates in China. These include 9 manufacturing sites, of which two feature engineering and technical centers. Johnson Controls began operations in Beijing in 1997, supplying seats and interior components to Beijing Jeep. Today, the operation also supplies complete seat systems and foam pads for Beijing Hyundai models. Johnson Controls has two partners in the operation - Beijing Automotive Industry Group and Shanghai Jiehua.
In 2004, the plant will build 160,000 complete seat systems, a 140 percent increase versus 2003. In support of its work, the facility uses some components imported from Johnson Controls plants in the United States -- seat adjusters, metal seat frames, and other seat and interior components.
In conjunction with the plant visit by Evans and Chao, Johnson Controls officials are expected to announce a new expansion initiative in China. The company will expand its seat-cover facility in Shanghai to export its products to Japan for Nissan seating systems.
Evans is the 34th Secretary of the U.S. Department of Commerce, and a core member of the nation's economic team led by President George W. Bush. He advises the President on a variety of key issues, including policies to promote growth and job creation, international trade, business concerns, and energy strategies. Chao is the nation's 24th Secretary of Labor. The first Asian-American woman appointed to a President's cabinet in U.S. history, she serves as an advocate for the country's workforce.
During the past two decades, Johnson Controls has established itself among the world's leading suppliers of automotive interior systems and components. It entered the Chinese market in 1997, with the launch of a joint-venture plant in Beijing. With 12 sites now operating across China, Johnson Controls' key focus is supporting the nation's indigenous automotive industry. Officials at the company project annual sales in China of $1.2 billion (estimated consolidated and non-consolidated sales) for 2004.
During the past eight years, Johnson Controls has mobilized an extensive array of capabilities in China beyond manufacturing. These capabilities include: product design and evaluation; prototype development; production verification; production support; costing and change control; benchmarking; industrial design; and local supplier development. Johnson Controls' Chinese operations produce automotive seat systems; instrument panels; seat trim covers; seat mechanisms; seat foam pads; door panels; headliners; clusters; parcel trays; overhead systems and electronics. The company's current customers in China include: Beijing Hyundai; Beijing Jeep (DCX); Changan Ford; Changan Group; China Brilliance; Dongfeng Motor (Nissan JV); Dongfeng Yueda Kia Auto; FAW Car company; FAW Truck Company, FAW - VW; Geely Auto; Jinbei GM; Shanghai General Motors; Shanghai Huizhong Auto; Shanghai Volkswagen; Shanghai GM - Wuling, and BMW Brilliance. In 1992, the Controls Group of Johnson Controls entered China when it established a subsidiary office in Beijing - called Beijing Johnson Controls Company, Ltd. Today, the company has 500 employees and offices in eight cities across the nation, including Beijing, Chengdu, Chongqing, Guangzhou, Shanghai, Shenzhen, Tianjin and Xian.
The firm's controls unit is a global leader in facility management and control, with extensive experience in the integrating of building automation systems, building management systems, premises distribution systems and public address systems. The Johnson Controls sites - which include wholly owned subsidiaries and joint-venture companies - provide customers global processes with local delivery. In China, the firm has demonstrated expertise in supporting large infrastructure projects, such as airports, universities, hospitals, plazas and factories.
Johnson Controls is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For non- residential facilities, Johnson Controls provides control systems and services including comfort, energy and security management. Johnson Controls , founded in 1885, has headquarters in Milwaukee, Wisconsin.
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